Grunewald Industries sells on terms of 1/10, net 30. Gross saleslast year were $4,342,000 and accounts receivable averaged$475,000. Half of Grunewald's customers paid on the 10th day andtook discounts. What are the nominal and effective costs of tradecredit to Grunewald's nondiscount customers? (Hint: Calculate dailysales based on a 365-day year, calculate the average receivablesfor discount customers, and then find the DSO for the nondiscountcustomers.) Do not round intermediate calculations. Round youranswers to two decimal places.
| Nominal cost | |
| Effective cost |
